In trading on Monday, shares of the iShares Russell 2000 Value ETF (Symbol: IWN) entered into oversold territory, changing hands as low as $90.54 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of iShares Russell 2000 Value, the RSI reading has hit 28.7 - by comparison, the RSI reading for the S&P 500 is currently 34.1. A bullish investor could look at IWN's 28.7 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), IWN's low point in its 52 week range is $85.43 per share, with $105.42 as the 52 week high point - that compares with a last trade of $90.60. iShares Russell 2000 Value shares are currently trading down about 0.9% on the day.